Tether Strengthens Bitcoin Lending Market with Ledn Investment
Date: 2025-11-19 Author: Oliver Abernathy Categories: BUSINESS
Tether has made a strategic move by investing in Ledn, a platform specializing in crypto-backed loans. This deal is part of a broader initiative to expand the infrastructure for users who want to obtain financing without having to hand over their Bitcoin. The company emphasizes that such solutions increase financial flexibility and strengthen the role of digital assets in the global economy.
Ledn is known for its proprietary custody and risk management tools, ensuring the protection of clients' assets throughout the loan term. Over the past few years, the service has issued over $2.8 billion in loans, and in 2025 alone, financing volume exceeded $1 billion—the highest level in the platform's history. In Q3 2025, the company nearly reached its 2024 level, issuing $392 million. Annual ARR exceeded $100 million, reflecting growing interest in Bitcoin loans.
The crypto-backed lending industry is also showing steady growth. Data Intelo analysts estimate that the market will grow more than sevenfold in the coming years, from $7.8 billion in 2024 to over $60 billion by 2033. Given these forecasts, Tether's participation appears to be a logical continuation of the trend of using digital assets as financial collateral.
Tether CEO Paolo Ardoino noted that the investment is aimed at empowering users who value preserving their cryptocurrency holdings while gaining access to liquidity. He emphasized that such models strengthen financial resilience and create the conditions for long-term growth in the industry.
Ledn co-founder Adam Reeds called the collaboration strategic and emphasized that the partnership brings together companies shaping the future of Bitcoin-based lending. He stated that Ledn's loan portfolio will nearly triple in 2025 compared to the previous year, and this growth confirms the company's chosen course.
The global market situation only strengthens the case for such initiatives. In 2025, several major players announced projects involving the use of Bitcoin as collateral. In Australia, Block Earner offered the first mortgage program backed by digital assets. CleanSpark raised $100 million from Coinbase Prime, pledging its own portfolio of 12,703 BTC. JPMorgan unveiled a product that allows institutional clients to provide Bitcoin and Ethereum as collateral. Major Asian investor Metaplanet also secured a $100 million loan secured by crypto assets.
Tether's investment in Ledn confirms that Bitcoin-based lending is becoming a key part of the modern financial ecosystem.
